Content Marketing ROI

 Content Marketing ROI

How To Measure Your Content Marketing ROI

Your content marketing ROI shows you how much revenue your marketing efforts have brought you compared to your marketing expense. It’s usually expressed as a percentage. It’s an important measure of your marketing success. Read on to find out how to measure your content marketing ROI the easy way.

1. Figure Out How Much You Spend on Content Marketing

content-marketing-roi-calculateWhether you produce your content or outsource it, you’re spending money to create it. The first step to calculating your ROI is to define your expenses. You want to factor in all costs associated with the content creation:

  • Content creation service/salary
  • Editing and proofreading
  • Images
  • Video
  • Outsourced work
  • File storage costs
  • Software costs, if you have to purchase specific software to produce content

Add up the costs for all of these and factor in any other expenses not covered above. It’s important to be precise with this step and take the time to consider all content-related expenses, even those that are less obvious.

2. Calculate the Cost of Distributing Content

Successful content marketing strategies usually involve at least some degree of content promotion. You have to factor these in too before you can accurately calculate your content marketing ROI. So, what should you take into account?

  • Pay per click advertising
  • Sponsored posts
  • Influencer marketing
  • Any other paid promotion strategies you may use to increase exposure for your content
  • Software marketing and distribution tools, including email marketing tools or automated content publishing tools

The exact content distribution costs can vary widely depending on the strategy and channels you use. Add in all the costs and don’t leave out anything.

3. Calculate the Sales and Other Revenue Resulting from Your Content Marketing

content-marketing-roi-salesThe simple question to ask here is—how much has content marketing improved sales? Regardless of your strategy, content marketing drives more traffic to your website and, by doing so, can increase conversions.

But sometimes, the link between content and revenue is not as easy to measure because the benefits of content marketing go beyond increases in sales. Using key performance metrics (KPIs) to measure your content marketing performance makes it easier to quantify the revenue that content marketing brings you.

With KPIs like social shares and traffic, you can quantify social media engagement and the other effects of content marketing that increase your brand value.

4. Determine Your Content Marketing ROI

You know how much you’ve spent on content marketing and how much distributing content has cost you. And you know how much you’ve earned from sales and other revenue generated by your content. Now you can calculate your content marketing ROI.
The formula is simple:
Return – Investment ÷ Investment

For example, if you’ve seen returns of $1,500 and spent $1,000 on content creation and distribution, that leaves you with $500 in revenue.
Divide that by your investment ($500/$1000) and multiply by 100%. You’ll get a ROI of 50%. Not bad!

Now that you know how much content marketing costs you, go ahead and calculate the costs. It will give you a better understanding of whether content marketing works for you or not.


Content Planning